Investing: Gold will continue a good show in 2012

"In the current scenario, investors' first choice should be putting money in debt. Of the debt portion, investments should be in tax-free bonds, which will help maximise tax-free returns. If you have gold, stay invested, increase its share in the total portfolio to 10-15 per cent, as this is the time to buy gold, though gradually," said Rajesh Iyer, head - products and research, Kotak Wealth Management.

For equities, Iyer felt though valuations might be looking cheaper, headwinds were still stronger. For commodities, the general outlook is not that attractive, but prices are seen to be near the bottom.

Investing: Gold will continue a good show in 2012

Ajit Dayal, director at Quantum Asset Management, advises those who have appetite for equities: "Investors should seek shelter in companies with low or zero debt and in fixed deposits with safe companies, preferably public sector banks."

He also supports gold like most others: "We always recommend gold as a part of the portfolio. Our eternal recommendation is to invest in gold. The precise mix of equity, fixed income and gold, either directly or via mutual fund investments, is a function of every investor's needs, the time horizons, and the ability to withstand sharp and sudden erosions in investments."

Investing: Gold will continue a good show in 2012

Gold has given positive returns over the last decade. According to Sudakshina Unnikrishnan, vice-president, commodities research, Barclays Capital, "The key factors that will determine support levels of the gold market is whether exchange-traded products' holdings remain relatively stable and physical demand responds to much lower prices.

"In the longer term, gold still possesses structural pillars of support in an environment of negative real interest rates and rising inflationary pressures, as well as continued central bank buying. We remain positive on gold prices for 2012, holding an annual average forecast of $2,000/oz."